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Sridhar Vembu responds to Meta engineer’s post saying, 'layoffs will continue till we learn to use AI'
Zoho founder Sridhar Vembu publicly replied to Meta engineer Arnav Gupta’s post about AI-led layoffs, agreeing with the premise that AI adoption costs are driving job cuts. He argued AI has escalated expenses, including a sharp rise in server costs, and framed layoffs as a cost-control measure rather than a productivity breakthrough, while signaling continued AI-driven coding.
Why It Matters
The exchange underscores the ongoing debate about AI’s impact on employment and operational costs in the tech industry, featuring insights from a prominent entrepreneur and a Meta engineer.
Timeline
2 Events
Sridhar Vembu responds to Arnav Gupta’s post
May 9, 2026
Sridhar Vembu shared Gupta’s post on his timeline, writing 'Important post from Meta engineer Arnav Gupta on all the AI-led layoffs'. He states that AI has increased costs for tech firms, citing his own AI bill and a 200-300% rise in server prices due to the AI infrastructure boom. He describes layoffs as the economic response to controlling the main cost—people—to fund AI and servers, notes that the reality is more about cost control than a productivity miracle, and concludes with a remark about using AI to generate more code to stay competitive.
Arnav Gupta’s post asserting layoffs will continue until AI is learned
May 9, 2026
Meta engineer Arnav Gupta posts that layoffs will continue until people learn to use AI tools. He references a list of around 8,000 names with a 10% chance he may be on it and notes he will know by May 20. He discusses AI’s role in productivity, the heavy use of AI in forward-looking companies, and questions why increased input does not necessarily translate into higher revenue, among other points about AI budgets and pricing.